On November 23, 2017 the Global Forum on Transparency and Exchange of Information for Tax Purposes Hereafter: (the Global Forum) issued a press release announcing that at its 10th meeting, which was held from November 15 - 17 in Cameroon, it adopted a Plan of Action for Developing Countries Participation in AEOI. The purposes of the Plan of Action is to ensure delivery of benefits of automatic exchange of information(AEOI) to all corners of the world and in particular to developing countries where it is most needed. The Global Forum invited all developing countries to take advantage of the Plan of Action.
The commencement of AEOI among 49 jurisdictions in 2017 is a breakthrough for tax transparency. With a further 53 jurisdictions finalising their preparation to start exchanges in 2018, strong interest is being shown by several developing countries for participating in AEOI in order to strengthen tax compliance in their countries. To facilitate their progress, a step-by-step approach has been embedded in this plan which builds upon the experience gained by the Global Forum in the past three years through AEOI pilot projects and other technical assistance activities.
Under the Plan of ACtion, developing countries have been invited to undergo a preliminary assessment of their capacity to implement the AEOI Standard. According to the Global Forum this will allow them, in consultation with the Global Forum Secretariat, to arrive at a practicable commencement date, supported by a tailored AEOI action plan. Technical assistance will be offered to support implementation in collaboration with other international organizations and member countries. The step-by-step approach ensures that no country will be left behind, with progress delivered through bespoke assistance and at multiple speeds in recognition of diverse capacities and risks.
Recognising the need for political will to advance this agenda and the substantial resources required, the Global Forum has called on the international development agencies, governments, civil society and other potential donors to support this vital agenda.
A.o. the following topics are discussed in the Plan of Action:
· A New Global Standard
· AEOI and Developing Countries
· The Status of AEOI Commitments
· The Importance of AEOI for Developing Countries
· Challenges Associated with AEOI Implementation by Developing Countries
· A New Developing Country Commitment Process
o The Mainstream Process – A Step-by-Step Approach
§ Step 1: Preliminary evaluation of the confidentiality and data safeguards framework and other relevant factors
§ Step 2: Proposing a practicable commitment date, supported by an action plan
§ Step 3: Seeking a formal commitment to implement the AEOI Standard
§ Step 4: Technical assistance, monitoring and assessment of AEOI implementation
o The Back-Stop Process – The Jurisdiction of Relevance
· Next Steps towards the Global Implementation of the AEOI Standard
Click here to be forwarded to the The Global Forum’s Plan of Action for Developing Countries Participation in AEOI as adopted by the Global Forum during its 10th meeting.
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